Once the Adjusting Entries Have Been Prepared (Journalized and Posted)

question 22

Multiple Choice

Once the adjusting entries have been prepared (journalized and posted) , which of the following steps of the accounting cycle are carried out in proper sequence?

• A) Prepare an adjusted trial balance, prepare financial statements, close temporary accounts, prepare a post-closing trial balance.
• B) Prepare an unadjusted trial balance, prepare financial statements, close temporary accounts, prepare a post-closing trial balance.
• C) Prepare closing entries, prepare financial statements, prepare an adjusted trial balance, prepare a post-closing trial balance.
• D) Prepare financial statements, prepare an adjusted trial balance, prepare closing entries, prepare a post-closing trial balance.

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Definitions:

Asset Beta

A measure of the risk of a firm's assets without the impact of debt, used to estimate the cost of equity in the capital asset pricing model (CAPM).

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification. Also known as market risk or undiversifiable risk.